Zaidi S., 35, is our client at Pearl Microfinance. He has had a business for the past 10 years of buying mukeneu, a small silvery fish, and dried fish from the fishermen at his neighboring landing sites in Nazigo. He is married with 5 children, who are still in school, and he takes care of 1 orphan. He is so proud of the trend that his business is taking after he joined his lending group, whereby he now buys good quality fish in greater numbers compared to before the loans. He is seeking a loan to be able to buy more fish so that he will be able to sell more for greater profits.
This is a Group Loan
In a group loan, each member of the group receives an individual loan but is part of a larger group of individuals. The group is there to provide support to the members and to provide a system of peer pressure, but groups may or may not be formally bound by a group guarantee. In cases where there is a group guarantee, members of the group are responsible for paying back the loans of their fellow group members in the case of delinquency or default.
Kiva's Field Partners typically feature one borrower from a group. The loan description, sector, and other attributes for a group loan profile are determined by the featured borrower's loan. The other members of the group are not required to use their loans for the same purpose.